Ministry of Finance announces the new Accident Prevention Factor (FAP) for 2018
Ordinance 419 of the Ministry of Finance, published on September 28, 2017, discloses the new frequency, severity and cost percentiles per subclass of the National Classification of Economic Activities (CNAE), used to calculate the Accident Prevention Factor (FAP).These percentiles should be applied by companies and their establishments in 2018 in the so-called Occupational Accident Insurance (SAT), whose varying rates of 1%, 2% or 3% are levied on the calculation bases of amounts subject to social security contribution of employees and temporary workers, declared in payroll. The new FAP rates –which will be in force in 2018 –can be checked, as of September 30, 2017, on the following websites: www.previdencia.gov.brand www.receita.fazenda.gov.br.
Companies can challenge any controversies related to the FAP 2018 from November 1, 2017 to November 30, 2017, exclusively via the electronic form provided on the websites of the Social Security and Brazilian Federal Revenue Service. Only disputes that point out differences related to the socialsecurity elements expressly listed in the Ordinance published today will be accepted.
Calculated annually by the Social Security based on the frequency, severity and cost indices of accident-related benefits generated by the company, the FAP is an individualized multiplication factor to be applied for each establishment enrolled with the Corporate Taxpayers’ Register –CNPJ; it can reduce the SAT rates by up to 50% or increase by up to 100%.
This warning contains information and general comments on legal matters that may interest our clients and friends. It does not represent the legal opinion of our firm on the subjects addressed herein. In specific cases, readers should rely on proper legal assistance before adopting any concrete action relating to the matters addressed herein.
For additional information on the matter, please contact:
Marcel Satomi – msatomi@machadoassociados.com.br
André Blotta Laza